Broadcom: Fiscal 3Q21 Financial Results

Broadcom Inc. reported financial results for 3FQ21, ended August 1, 2021, provided guidance for 4FQ21 and announced its quarterly dividends.

“Broadcom delivered record revenues in the third quarter reflecting our product and technology leadership across multiple secular growth markets in cloud, 5G infrastructure, broadband, and wireless,” said Hock Tan, president and CEO “We are projecting the momentum to continue in 4FQ21.”

“Our business model continues to perform. Consolidated revenue grew 16% Y/Y to $6.8 billion and operating profit increased 24% with adjusted EBITDA margin a record 61%,” said Kirsten Spears, CFO. “We generated $3.4 billion in free cash flow or 51% of revenue in the quarter, and we expect free cash flow to remain strong in the fourth quarter.“

Cash and cash equivalents at the end of 3FQ21 were $11,105 million, compared to $9,518 million at the end of 2FQ21.

During 3FQ21, the company generated $3,541 million in cash from operations and spent $115 million on capital expenditures.

On June 30, 2021, the company paid a cash dividend of $3.60 per share of common stock, totaling $1,482 million and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $74 million.

4FQ21 outlook
• Revenue of approximately $7.35 billion; and
• FAdjusted EBITDA guidance of approximately 61% of projected revenue

The board of directors has approved a quarterly cash dividend on its common stock of $3.60 per share. The common stock dividend is payable on September 30, 2021 to common stockholders of record at the close of business on September 22, 2021.

The board has also approved a quarterly cash dividend on its 8.00% Mandatory Convertible Preferred Stock, Series A, of $20.00 per share. This dividend is payable on September 30, 2021 to preferred stockholders of record at the close of business on September 15, 2021.